NESDB predicts Thai economy to grow by 4.5-5.5%, inflation at 2.5-3.5% in 2013

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BANGKOK, 18 Febraury 2013 The Office of the National Economic and Social Development Board (NESDB) estimates that the Thai economy in 2013 will grow at the rate of 4.5-5.5%. 

The think-tank’s secretary-general Akom Termpitayapaisit said that the major drives for the nation’s economic growth will be the recovery of the US, European and Chinese economies, the government’s investment projects, the recovery of the electronics and computer industries, and the healthy domestic demand.

The think-tank, meanwhile, predicts that this year’s exports will grow by 11% and inflation to stay low at 2.5-3.5%.

As to risk factors, Mr Akom said that capital outflows and an unstable baht will pose a serious risk to the economy. He emphasizes that a strong or a weak baht will not pose as much risk as an unstable baht.

Regarding the possibility of using monetary policies to stimulate further growth, Mr Akom said that interest rate adjustments may be used to stimulate growth, but they will come at some costs. In his opinion, the present economic conditions do not warrant such drastic measures,he said.